Regulatory Alerts2023-06-27
Bank Indonesia Regulation Number 4 of 2023 on Short-Term Liquidity Assistance for Conventional Commercial Banks
Bank Indonesia issued Regulation Number 4 of 2023 to establish the framework for providing Short-Term Liquidity Assistance (PLJP) to conventional commercial banks experiencing liquidity difficulties. The regulation mandates that eligible banks must demonstrate solvability, provide adequate collateral such as high-rated securities or credit assets, and submit detailed applications coordinated with the Financial Services Authority. It further specifies the valuation methods, collateral replacement procedures, and sanctions for non-compliance to ensure financial system stability.
Share